Tesla’s core auto business—responsible for three-quarters of its $100 billion in revenue—has been sputtering in 2025. First-quarter profits plunged 71%, kept afloat only by $595 million in regulatory credit sales. Analysts expect another tough earnings report on July 23, forecasting a nearly 10% revenue dip and a 20% drop in profit.

Elon Musk's electric vehicle company Tesla delivered 13% fewer cars in the second quarter of 2025 compared to a year earlier.

Tesla is headed for another year of shrinking sales after it posted a second straight drop in quarterly deliveries, dragged down by CEO Elon Musk's right-wing political stances and an aging vehicle line-up that has turned off some buyers.